Dave & Buster's Entertainment, Inc.PLAY
Dave & Buster's Entertainment, Inc. Leases Disclosure
Leases
We currently lease the vast majority of the buildings or sites for our stores, store support center, and warehouse space under facility operating leases. These leases typically have initial terms ranging from to twenty years and generally include one or more options to renew. When determining the lease term, we include option periods for which renewal is reasonably certain. Most of the leases require us to pay property taxes, insurance, and maintenance of the leased assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating leases also include certain equipment leases that have a term in excess of one year. Certain facility leases also have provisions for additional contingent rentals based on revenues.
Operating lease cost, variable lease cost and short-term lease cost related primarily to our facilities is included in “Other store operating expenses” for our operating stores, “Pre-opening costs” for our stores not yet operating, or “General and administrative expenses” for our store support center and warehouse, in the Consolidated Statement of Comprehensive Income (Loss).
The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and property taxes, are as follows:
| February 3, 2026 | February 4, 2025 | February 4, 2024 | |||||||||||||||
| Operating lease cost | $ | 212.0 | $ | 202.5 | $ | 198.3 | |||||||||||
| Variable lease cost | 41.3 | 42.5 | 40.1 | ||||||||||||||
| Short-term lease cost | 1.5 | 2.5 | 2.9 | ||||||||||||||
| Total lease cost | $ | 254.8 | $ | 247.5 | $ | 241.3 | |||||||||||
Operating lease payments in the table above include minimum lease payments for future sites for which the leases have commenced. As of February 3, 2026, the Company had signed lease agreements with total lease payments of $131.6 related to seven facility leases which had not yet commenced. Fixed minimum lease payments related to these facilities are not included in the right-of-use assets and lease liabilities on the Consolidated Balance Sheets as of February 3, 2026.
Supplemental disclosures of cash flow information related to leases were as follows for years ended:
| February 3, 2026 | February 4, 2025 | February 4, 2024 | |||||||||||||||
| Scheduled payments for operating lease liabilities | $ | 214.3 | $ | 205.9 | $ | 204.3 | |||||||||||
| Scheduled payments for finance lease liabilities | $ | 1.7 | $ | — | $ | — | |||||||||||
Net lease assets obtained in exchange for new operating lease liabilities (1) | $ | 62.5 | $ | 92.1 | $ | 92.8 | |||||||||||
Net lease assets obtained in exchange for new finance lease liabilities (1) | $ | 28.9 | $ | — | $ | — | |||||||||||
| Weighted-average remaining lease term—operating leases | 12.2 years | 12.6 years | 12.9 years | ||||||||||||||
| Weighted-average remaining lease term—finance leases | 19.4 years | N/A | N/A | ||||||||||||||
| Weighted-average discount rate—operating leases | 7.6 | % | 7.6 | % | 7.5 | % | |||||||||||
| Weighted-average discount rate—finance leases | 7.5 | % | N/A | N/A | |||||||||||||
(1)Amounts shown are net of tenant improvement allowances recorded as a reduction of the initial right of use assets.
Minimum future maturities of lease liabilities as of February 3, 2026 were as follows:
| Operating Leases | Finance Leases | ||||||||||
| 2026 | $ | 205.6 | $ | 2.7 | |||||||
| 2027 | 226.1 | 3.0 | |||||||||
| 2028 | 225.0 | 3.0 | |||||||||
| 2029 | 220.0 | 3.1 | |||||||||
| 2030 | 206.6 | 3.1 | |||||||||
| Thereafter | 1,511.9 | 49.8 | |||||||||
| Total future operating lease liability | $ | 2,595.2 | $ | 64.7 | |||||||
| Less: imputed interest | (934.6) | (31.4) | |||||||||
| Present value of operating lease liabilities | $ | 1,660.6 | $ | 33.3 | |||||||
Sale-Leaseback Transactions
In fiscal 2025, the Company entered into sale and master lease agreements (“sale-leaseback transactions”) with an unrelated third-party. Under these agreements:
•The Company sold two of its open store properties, including land, buildings and certain improvements, and then leased the assets back through these sale-leaseback transactions.
•The Company sold certain store properties, including land, buildings and certain improvements, and then leased the assets back through these sale-leaseback transactions. The locations sold were in varying stages of development, or began development in fiscal 2025, and are scheduled to open through fiscal 2026. The Company expects to receive incremental proceeds in the amount of remaining capital expenditures incurred related to the construction of these stores prior to opening.
•Total proceeds related to these sale and master lease agreements as of February 3, 2026 were $106.4, net of certain closing costs.
The sale-leaseback transactions were accounted for as failed sale leasebacks based on GAAP under ASC 842, Leases. As a result, the store property assets remain on the Consolidated Balance Sheet at their historical cost and are depreciated over the remaining term of the applicable master lease. Financing liabilities were recognized in the amount of the proceeds received, net of certain transactions costs. The Company does not recognize rent expense related to the leased assets. Instead, monthly rent payments under the applicable master lease agreement are recorded as interest expense and a reduction of the outstanding liability.
As of February 3, 2026 a long-term outstanding lease liability of $367.5 was recorded in Other long-term liabilities and the current outstanding liability of $2.8 was recorded in “Accrued liabilities” on the Consolidated Balance Sheets related to the sale-leaseback transactions discussed above as well as additional sale-leaseback transactions completed in previous years.
Finance Leases
In fiscal 2025, the Company amended leases related to three existing properties with an unrelated third-party. The Company received $4.5 in proceeds related to these extensions. As a result of the amendment, the Company reclassified these leases as finance leases.
As of February 3, 2026, the Company had finance lease liabilities related to three properties. The current outstanding finance lease liability of $0.5 was included in on the Consolidated Balance Sheet and the long-term outstanding finance lease liability of $32.7 was included in on the Consolidated Balance Sheet.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 31, 2026 | Showing above |
| 2025 | Apr 7, 2025 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.